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Stop Using Obama for America Against the People!

8:57 pm in Uncategorized by letsgetitdone

Obama for America, the campaign apparatus with the very large e-mailing list and great segmentation techniques that exploited Romney’s weaknesses to help the President to eke out (yes, I know the electoral vote involved no “eking out,” but the popular vote was something else again) his re-election victory, is now trying to mobilize people who voted for the President to work against their own interests by supporting his deficit/debt cutting activities. So, I couldn’t resist the following commentary on their mobilization e-mail.

From the graphic:

Right now, President Obama is working with leaders of both parties in Washington to reduce the deficit in a balanced way so we can lay the foundation for long-term middle-class job growth and prevent your taxes from going up.

This is just one sentence. But it has more errors in it than a whole book written by some economists. First, it assumes that we should “reduce the deficit.” But:

– It’s fiscally irresponsible to frame and follow a long – term deficit reduction plan (limited austerity) when, as now, both a trade deficit and an output gap between the economy’s potential and its actual results exist. Such a plan is one that must remove more net financial assets, specifically reserves, from the private sector than would otherwise be the case, every year the plan is pursued. Banks can compensate for these reserves by creating new ones when they make loans. But, loans create both assets and liabilities in equal measure and no new net financial assets.

So eventually, if deficit reduction is pursued for long enough, a declining rate of addition to private net financial assets will exacerbate the output gap by lowering aggregate demand and causing both labor and capital to deteriorate. This will eventually dig the US’s economic grave by reducing the productive capacity of the economy, and the Government’s ability to sustain greater levels of deficit spending, producing outputs of real social value, without triggering inflation. Oh, well, President Obama, Timothy Geithner, Jack Lew, Erskine Bowles, Alan Simpson, Alice Rivlin, Pete Peterson, and the rest of us will be able to find consolation by reminding ourselves that our collective trip to the poorhouse was in the service of the neoliberal notion that fiscal responsibility is all about containing the rise of the debt-to-GDP ratio.

– REAL fiscal responsibility is a pattern of fiscal policy intended to achieve public purposes (such as full employment, price stability, a first class educational system, Medicare for All, etc.), while also maintaining or increasing fiscal sustainability, viewed as the extent to which patterns of Government spending do not undermine the capability of the Government to continue to spend to achieve our public purposes. Read the rest of this entry →

I Shared My Thoughts with Organizing For America

10:11 pm in Uncategorized by letsgetitdone

Today I was favored with a message from Organizing for America (OFA). They asked me to listen to a video clip from the President explaining the deal he made with the Republicans. The President spent a lot of time explaining the process he’s gone through and the constraints he’s under, and what it was possible for him to do under the circumstances. He presented himself as being in a politically weak position in which he could only make an unpalatable compromise in order to “get something done” for the American people and those among us who are really hurting economically.

The OFA message asked me to share my thoughts after I listened to the President. So, I did this and also thought I would share them with you. Here they are.

I’m really not interested in process. I’m interested in results. Your results are bad on jobs and the economy. They’re bad on finreg and on getting rid of very large too big to fail banks with hidden toxic assets. They’re bad on credit card reform. They’re terrible on health care reform They’re terrible on torture and accountability, and ending the wars. They’re terrible on mortgage foreclosure fraud. And now they’re terrible on tax cuts for the wealthy. In light of all these results, I have only one thing to say to you at this point.

“You have sat too long here for any good you have been doing. Depart, I say, and let us have done with you. In the name of God, go!”

That is, Obama Resign!

(Cross-posted at All Life Is Problem Solving and Fiscal Sustainability).